Thanks Giving: The weirdly shaped week has finally come to an end with the market holding significantly higher as players anticipate the fall-out of Dubai and the state supported debt issues that roiled markets. The week's auctions had been impressive and that will put pressure on the upcoming offerings to go off smoothly as well, but will have a recess of sorts next week form additional supply. The week ahead has an economic calendar heavy on big-ticket reports back loaded into the week's end which could all add to swings. Expectations on the Friday jobs report are still negative, but economists are looking for strong improvement. The market will also be getting a glimpse at the likely record size of the final run of 3-10-and-30-yrs to go off the following week. The market is expecting Treasury to continue to boost size in the longer dated maturities while holding-steady or paring amounts of the shorter dated issues. At minimum they will likely announce a steady, but at-record, $40B 3-yrs while potentially adding size to the longer maturities. The curve was swung around but went out near the flatter levels of the month with the 2-10-yr yield spread running 252. The dollar was given a hard safe-haven rally, but gave it all back once concerns over the latest headlines lessened. The index was knocked up to trade near 75.60 before being unwound back off to range just under 75.00. The euro was able to pull itself back to near 1.50 after an early risk reversal run at 1.4828. The yen was also pushing back to near the-pre holiday levels after hitting its best levels since 1995. Monday has the leakable Chicago PMI (9:45) along with the usual 3-and-6-mos, which will see $30B and $31B offered respectively.
